Bolsonaro opposes Economy and must sanction small business Refis

President Jair Bolsonaro (PL) is expected to sanction the bill that intended to open a tax debt renegotiation program for MEIs (individual microentrepreneurs) and Simples Nacional companies.

The decision means a change from the initial indication of a full veto and contradicts, once again, the recommendation of the Ministry of Economy. The economic team pointed out the risk of violating the LRF (Fiscal Responsibility Law) and provisions of the LDO (Budget Guidelines Law) and the Constitution. The deadline for sanction ends this Thursday (6).

Bolsonaro had already ignored the economic team in sanctioning the exemption of the payroll of 17 sectors for another two years. The measure was made without any measure of compensation for the loss of income, contrary to the portfolio.

At the beginning of his weekly live this Thursday, appearing not to know that the broadcast had already started, the president indicated that he was against the veto. “How are things, right? The guy wanting me to veto Simples Nacional”, he said.

Before that, an assistant to Bolsonaro stated in the video that he was following the topic. “You are now with Julio Cesar [Vieira Gomes, secretário especial da Receita Federal], I’m following it”, said the assistant.

According to interlocutors from the Planalto Palace, despite the recommendation of the Economy, the president took the political decision not to veto the text. Now, the technicians try to equate the solution.

The tendency is for there to be a partial veto, to prevent companies that were not affected by the pandemic from entering the renegotiation program.

By granting discounts to debtors, the program approved by the National Congress would generate a waiver of revenue. The impact, however, is not foreseen in the 2022 Budget.

According to sources in the economic area, the impact on revenue this year would be approximately R$ 600 million. The government estimates that R$50 billion could be traded.

Earlier, interlocutors from the Planalto Palace told the leaf that what is on the radar at the moment is the full veto of the law.

These interlocutors also said they had made it clear to Congress that there was no agreement to sanction the text, which had been modified in the Senate.

A leaf showed, however, that there is growing unease with requests for a veto from Paulo Guedes’ portfolio, alleging loss of revenue and lack of compensation.

In the case of the ethanol sale project, for example, Planalto and Economia diverged, but the president had to veto the proposal, completely emptying it. The measure, however, was not made unfeasible, thanks to a resolution by the ANP (National Petroleum Agency).

The decision to sanction the Refis for small businesses puts pressure on the government to adopt compensatory measures.

As revealed to leaf, the Planalto Palace’s thesis to sanction the exemption without counterparts contradicts the decision of the TCU (Union Court of Auditors), and the court has already demanded explanations. The government has until January 31 to prove that it respected the LRF in granting the waivers.

The change of direction in relation to the Refis sanction of micro and small companies came after the reaction of the National Congress.

Deputy Marco Bertaiolli (PSD-SP), who was the rapporteur of the proposal in the Chamber and coordinates the Parliamentary Front for Entrepreneurship, criticized the government’s intention to veto the text. According to him, the government would no longer benefit 4.5 million Simples companies.

“We are very disappointed with this news. We are the most economically harmed by the pandemic. Companies were closed, accumulating debts”, said Bertaiolli.

According to the deputy, the veto makes it impossible for entrepreneurs across the country to gain breath to cross 2022. “Micro-entrepreneurs do not have the same conditions as large companies and need help to reverse almost two years of losses in their activities”, he said.

“The impact is absolutely minimal, close to zero. The government does not have the necessary sensitivity to preserve companies”, he criticized.

Bertaiolli said that if there is a veto, he will work to overturn it. He pointed out that the Parliamentary Entrepreneurship Front alone has more than 200 parliamentarians, including deputies and senators.

In addition to the violation of tax rules, the Ministry of Economy pointed out, in its justification for asking for the veto, that constitutional amendment 109 imposed on the government the need to present a plan to gradually reduce tax incentives and benefits.

The implementation of Refis, for the Economy, would be a measure in the opposite direction to what is required by the Constitution.

According to the text approved in Congress, micro and small companies would pay an entry of 1% to 12.5% ​​of the debt value, depending on the degree of loss of income during the crisis caused by the Covid-19 pandemic.

In addition, they would have discounts between 65% and 90% on interest and fines and from 75% to 100% on charges and legal fees, also according to the impact of the crisis on their cash.

To mitigate the negative effect of the veto, the Economy was studying the creation of a specific tax transaction program for this segment.

Thus, companies affected by the pandemic could have access to more advantageous conditions to negotiate their debts, while respecting the maximum limits stipulated in Law No. 13,988/2020, which created the transaction mechanism.

The law provides that the maximum abatement will be 70% of the debt amount, considering the conditions established in the PGFN (National Treasury Attorney General’s Office) and the debtor’s ability to pay.

According to Bertaiolli, if the PGFN opens a public notice with the same conditions stipulated in Refis, this would help companies. However, according to him, not all of them would be able to settle any debts with the Federal Revenue Service, which have their own rules for establishing negotiations.